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The Fed and Policy Dovishness

Paul Vigna and Heather Loomis discuss dovishness at the Fed, and Brian Fitzgerald looks at a new live-streaming app.

This transcript has been automatically generated and may not be 100% accurate.

more than welcome to MoneyBeat I am Paul beanie a U S stocks in the red this morning is this to sell up again earlier the weakest recession through yesterday ... now it's for right now of the few see that the Dow Jones industrial average ... down ninety three points the Nasdaq down thirty eight points ... Essen P twenty fifty one down ten points ... his albeit is exacerbated by a troubling geopolitical news today if Saudi Arabia launching air strikes in Yemen U the US launched airstrikes in Iraq to create ... will obviously be fall and all of that and in addition to that that so that you put on this ... market news well ... market still trying to figure out exactly when the Federal Reserve might ... raise interest rates the Fed has put the market on notice that is going to raise rates but all the details really all the de tails when and how much how often are up in the air Heather Loomis is managing director Phil Grant managing director of fixed income at JPMorgan Private Bank and she joins us this morning ... her thoughts on how the hell are you content Arielle of eight summit was the Fed to raise rates ... which is can be September ... he thinks that every shooting that pushed off in June effectively now September ... September's realistic I think you know they told us that they're going to be down to focus the data has been very good ... we saw a little bit of a blip into the first quarter weaker retail sales weaker housing ... we expect that to Excel or eating to queue to answer September looks reasonable ... he added that the weak durables report yesterday ... this is not to be on the spot but ... it's curious to me because if the economy is doing so well ... interest rates are zero to zero for six years that is extremely low extremely accommodative ... BdB wat why is there so much thanks to the region this evening twenty five basis points no I completely agree with you ... and attack a Kingfisher recently said we're going from old truck Icahn and it to you know extremely accommodative ... second if recognition even in the fact that this isn't ... Q going from zero to a half a percent is certainly not going if very differ in that time ... I think there's a couple of things that are weighing on the Fed's mind ... the dollar ... the fact that they're going to be moving out of sync with other major central banks which really doesn't occur often at all within a course of history ... and this is the only other precedent to this cycle that we're in a big deleveraging cycle which were kind of pulling out a ... few of them was the depression ... and that they ... the issues with raising rates too soon are very well known and understood that if that it was time for sentiment that this the diverging central bank policies that the variance ... yes ... that is the world's preeminent central bank the set the tone ... day are moving in a direction that really is up ... to a lot they're going to raise rates eventually so ... they're moving into action really is opposite to live with the central bank is going ... that's unusual and the crate some with such strong crosscurrents exactly because we're in a war in the world right now where the strongest economy or looking in Europe and were looking at Japan which are trying to pull themselves up ... as a result they're going to the scene quantitative easing process that we just ended ... so I think that they issue of diverging central bank policies is almost exacerbated now that we're in a world of quantitative easing ... because it's not just divergent policies is diverging policies into quantitative easing this when you're looking at German ten-year rates hit twenty basis points ... in our Ishino weren't around two percent ... of course that puts even more pressure on our dollar and on our Ponzi into it I think that that something which we're cognizant of I'm before let you go you guys are underweight fixed income ... we are and the Mississippi's NSL an expression that we don't like fixing Philadelphia could produce positive returns ... it's more of an expression that we think it's better value in other asset classes ... like equities and alternatives for we have been overweight for a while there are a highly happily there had a thank you very much from its ... when we come back I ... can tell they had a rough divorce from Bill Gross ... it can to get her feet back under them talk about next ... Pimco had a very rough divorce from its founder Bill Gross ... Bond seems that had been dead for at the year-ago ... firm is righted the ship and even travel something to hold over its old leader's head right now ... column bar has the details on this story ... so calm and took him out with their latest ... performance numbers right ... and another lucrative informing better so was six months ago today that that Bill Gross left Pimco ... aam and the Total Return Fund which had gone through a long period of very pour performance which was the thought that was in the rhino is the right keys and co-founder of Pimco and says he ... he left and I've been performed were live there performing better now ... it's a time when he's ... been coming out of the fund in the fund is now a hundred twenty four billion I think so much and was to ninety three billion in two thousand thirteen some this is been a massive massive Colonel ... yet ... and I I remember the the the immediate aftermath of him leaving back to camera that I was told to me that was the whole thing was all cleaned out in ... the L a even with that the smaller asset base now mean how is that if ... it ... was a perception out the doing is they're the fund is doing better but how the deal Ryo why I think that they're they're fighting the fighting an awful battle because they were people people who use GrooveBook to ten belatedly after the financial crisis that will call a money and that thing you certain that no one really dismissing got almost three hundred billion ... for much smaller number written in this was just the fact that after the financial crisis there's huge metal ones issued in bonds staged huge rally to this the people who happen to be doing that you did very well and then as we know the of the flows Falun performance so ... they had a good period of quite a lot of money in the door ... and then a very pour performance what one of the few things that the fund is that it got much bigger during the taper tantrum ... of two thousand thirteen unit that was when when money starts rushing out Treasurys cousin went up to the Connie was going to normalize Ministry of Foreign since then it's going to take a long time for the economy to normalize you if that's the conversation you're having this ... is in part a discussion of when will the Connie normalizing answers we still don't know ... why and that's why this why we still of doubts about what the Fed's going to raise rates for regardless of of what a difference ... what he think was ... we think is a typical feel about this man has to be a little bit ... little little can be diplomatic this is some satisfaction that that the team put these numbers actually that they've done better since he's gone I'm sure I mean I'd I think what we've we painted a picture of gross not being the easiest guy to work with unnecessarily and I think that they probably feel good about the fact they're now moving forward and in this ugly period ... is over and as you think they probably feel if they were put in a position where where they ... had nothing to do but fall means that three hundred billion dollar bomb fund in the ... targeting of so so it's it's it's it's a minute that I guess the for the paid to discuss the announcement that ... that's it with leave it there how far think you're a much ... when we come back have you heard me or ... I know not to laughable the app will yet mean her in the attack is another one coming in competing with that ... fast-moving world of tech for a really get to get all of that ... her school is put is a long awaited live streaming out ... to me its debut in Apple's app store this morning ... and the battle is on with Newark at ... a number of either one of these probably add the most people hadn't ... deadliest J D deputy head to the editor Brian Fitzgerald though he has and he is here with the blow by blow ... and I just told Brian ... I am actually I downloaded her spoke this morning ok I am using Apple co ... we are live somewhere I've known as the other hand the fall within a year that the thing with it to you in your town you gets you should near cash and you know what you're talking ok on its lentils was good to see this is a world that is really all the last couple of weeks after he is really kind of emerging in the public outcry from great storylines with this theory of the financial one The Amir khaki not today ... said we have new funding didn't disclose the name ... you know the valuation or what what what ... what are they got the only money orders and somebody in some early adopter type of name Dukakis Ventures ... aam handsome actor is entirely to fess up so that they're wrapping up investments of actor Jared Leto ... at the same time that the Twitter is now putting forth its own ... service solution with the color out ... of for a live streaming and it's it's a really nice head to head all you have a lot on their school ... read that right there you're part of a big downturn stoking onto it Kelsey grammer who well ... a flock ... why isn't such a big deal ... while you know I was thinking about this this morning ... and I still it went into on demand world know that subtly like watching things last name ... is magical Brio when I use to be you know the leeway really good stuff ... in Tuesday's first run but ... what I find fascinating about this story is just a kind of head to head back to merge if you look back at the time when rates whereby parents go for on January ... cars of the bed and development for till sometime alley in almost a year ... um that would abide in January and and their cats only becomes really popular he'll months later than on day one I believe they won the South by Southwest operator ... in Twitter that says over just kind of disconnect near cash from what they call social graph right so ... you with that means in layman's terms as it makes a really hard tail isn't your cup this if I was savvy enough to talk to you and it is the same time Western attempts ... of ... who would do with that means the website demure cut some that were doing right now ... people fall no Twitter would be notified of the fact that happen they hadn't steering out there that Twitter at the time I knew that I'd have to show up for them to know that makes it so much harder than what telescope that can do I use it you tell may ... outweigh is that which is no more capable Lia it's it's better able to tell all ... your followers that you are going through ... a stream coming to form a notification process in which I'd ... I'd I think is necessary to all the noise going on ... noise is this just noise is still on the whole thing worse than it ... is I mean that this hike rates this whole IPO that you now or putting people's hands ... the ability to live stream in a bit all over the world video NAND ham sandwich come watch me and said I cannot yet mean that we're doing a new show here hoping to have ... um no right to vote our Pursell tech columnist joins during the first impressions in one of our ... initial takeaway is just of using it with ... it's just not that interesting watching my life of yelling pasta one area ... but you know we all know that when you know when a plane lands in the hot sand or you're out like what was what might Twitter so so hot right the plane lands of Hutson door ... to the helicopter in about about about to land on you know some compound on and that happening in the bin Laden's compound like ... these moments were suddenly ... deal to broadcast ... live matters previously was tax handouts video were becoming much more video centric world ... argue with every passing day so ... yet I mean you can call it annoys one hundred s majority people will be but full of people it this is gonna be the life of the video there's value of that ... that's great Leslie that their price are much ... thank you very much everybody feel as if ... that is that the money before it a ... comeback NEW on Lunch Break with Lee Hawkins right here on WS J live ... I am Paul vignette had a great day everybody ...